Budgets. Budget vs. Pricing Pricing 1 program Seasonal Drives budget Budget Multiple programs Fiscal year Deals with revenues & expenditures.

Budgets

Budget vs. Pricing

• Pricing• 1 program• Seasonal• Drives budget

• Budget• Multiple programs• Fiscal year• Deals with revenues & expenditures

Budget

• Financial plan that outlines and forecasts the revenues and expenditures over a fiscal year

Some Terms

• Fiscal year

• Allocated & expended monies…

Clear Water Rafting Company

Budget Statement - 1st & 2nd Quarters - End July 31

Actual Budget Committed % Balance

Revenues

Trips $42,113 $72,500 $0 58.1% $30,387

Concessions $8,671 $14,000 $0 61.9% $5,329

Store receipts $11,148 $20,000 $0 55.7% $8,852

Total revenues $61,932 $106,500 $0 58.2% $44,568

Expenditures

Staff $35,963 $52,100 $1,500 71.9% $14,637

Supplies $2,147 $3,100 $0 69.3% $953

Utilities $1,610 $2,430 $0 66.3% $820

Mortgage $8,051 $16,000 $0 50.3% $7,949

Marketing $2,684 $4,300 $500 74.0% $1,116

Maintenance $3,221 $4,300 $0 74.9% $1,079

Total expenditures $53,676 $82,230 $2,000 65.3% $26,554

Some Terms

• Budget cycle• Length of time required to prepare,

administer & close out a single year budget

Budget Cycle

• National Park Service – 21 month cycle

- 2011 is in progress

- 2012 is under congress review

- 2013 preparation is beginning

Fiscal Year 1999 Fiscal Year 2000 Fiscal Year 2001

Budget Close-out - 3 months

Budget Preparation - 3 to 9 months

Fiscal Year 2010 Fiscal Year 2011 Fiscal Year 2012

Why budget?

• Prediction of resources• Prediction of a work schedule• Used to make decisions• Explains resource acquisition &

expenditures to stakeholders• How goals are being met

2 types of budgets

• Capital• Major purchases lasting 10+ years• Facilities, renovations, equipment• Developed independently of operating

budgets• Arbitrary cut-off expense set• Covers 5-6 years (CIP)• Priorities are reviewed & shifted annually

Project 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Fairview Park Softball Field Fencing replacement $30,000

Underwood Tennis Court Rennovation $60,000

Shepard Park Development $750,000

Constitution Trail Repaving $40,000 $40,000 $25,000

Misc ADA imnprovements $10,000 $10,000 $10,000 $ 15,000 $15,000

Normal Parks & Recreation Dept.

Priority Project NameFinance Source Revenue Expenses

1LINCOLN LEISURE CENTER-CONSTRUCTION WORK CIF $220,000

2SKATEBOARD PARK-CONSTRUCTION CIF $170,000

3MCGRAW COMMUNITY PARK-2ND PHASE CIF $700,000

4MCGRAW COMMUNITY PARK-2ND PHASE OSLAD $400,000 $400,000

5MCGRAW COMMUNITY PARK-PARKING LOT CIF $550,000

6CONSTITUTION TRAIL(GROVE ST. SOUTH TO LAFAYETTE) TEA $1,000,000 $1,000,000

CIF = Capital Improvement FundOSLAD = Open Space Lands Acquisition and DevelopmentTEA = Transportation Economic Assistance

Bloomington Parks & Recreation Dept.

2 types of budgets

• Operating• Annual, routine activities• All revenues & expenditures for day to day

operation

Operating Budgets

• Line item budgets• Object classification budgets• Program budgets• Performance budgets• Zero based budgets• Running budgets

Line Item Budgets

• Item• Specific item or object for which monies

will need to be allocated• Postage, equipment

• Line• Process of placing the items in a line so

that all items appear on the budget sheet

Line Item Budgets Process

• List all revenues• Fees program 1• Fees program 2• Other sources

• List all expenditures• Staff• Utilities• Office supplies

• Determine costs of each item

Does not divide by fixed & variable

costs…but these are

still used in pricing.

Line Item Total

Revenue

Ticket Sales $1875

Reserve (Savings) $36

Total Revenue $1,911

Expenditures

Meal $900

Appetizers $131

Damage deposit $50

Rental fee $75

DJ $300

Mailing $53

Printing - invite $53

Printing - info sheet $14

Envelopes $60

Total Expenditures $1,636

REVENUESProgram fees $6400

EXPENDITURESFlights $1126.60Rental Car $268.59Hotel $2700.00Gas $323.40Meals $540.00City Walk $140.92Busch Gardens $130.90Titanic Exhibit $31.84Arabian Nights $113.20Universal Studios $157.60Disney Quest $56.24Walk Disney Theme Parks $377.02Medieval Times $134.72Sleuths Mystery Dinner $75.02Kennedy Space Center $76.00Wet and Wild $78.70Pleasure Island $33.70Ripley’s Museum $28.08

TOTAL: $6392.53

$1127/ $1130

Line Item Budgets• Advantages

• Flexibility• Add/delete items as needed

• No coding system• Easy to administer

• Doesn’t require ee to conform to a single system

Line Item Budgets• Disadvantages

• Easy to forget items, thus no $ allocated

• Confusion in comparing between departments

• Used most often in an informal situation

OCB

• Most common form of budget, similar to line item budgets

• Object - item for financial cost• Salaries, phone bills

• Classification – uniform method of grouping the objects into certain categories & subcategories• Personnel, Contractual services, Commodities• See handout

Example ClassificationExpenditure Classification by Object2000: Services: Contractual

2100 Communication & Transportation

2110 Postage

2120 Telephone

2300 Printing, Binding, Advertising

2350 Advertising & Publication Notice

Expenditure Classification by Object2000: Services: Contractual

2100 Communication & Transportation

2110 Postage

2120 Telephone

2300 Printing, Binding, Advertising

2350 Advertising & Publication Notice

Classifications Sub classificationsObjects

Table 13.2: Sample Object Classification Categories

Object total

Sub-category

totalCategory

Total1000: Personnel Services $2,037,000

1100 Salaries, Regular (Full Time) $1,500,0001200 Salaries, Temporary (Part time) $25,0001300 Wages, Regular (Hourly, FT) $250,0001400 Wages, Temporary (Hourly. PT) $175,0001500 Contractual employees $75,0001600 Other Compensations $12,000

2000: Contractual Services $641,2522100 Communication and Transportation $183,252

2110 Postage $5,0022120 Telephone $23,0002130 Freight and Express $10,0002140 Travel & Lodging $70,0002150 Vehicles $32,0002160 Gasoline, Oils and Lubricants $43,250

2300 Printing, Binding and Advertising $16,4752310 Printing/Photocopying $12,0002320 Typewriting/Word Processing $5002330 Binding $5002340 Photocopying & Blueprinting $2502350 Advertising & Publication of Notices $3,225

Table: 13.4: Combination of a Program Budget and OCB

Object totalSub-category

total Category Total

1000: Personnel Services $802,100.00

1100 Salaries, Regular (Full Time) $600,000.00

(12) Membership $160,000.00

(13) Marketing $80,000.00

(14) Meeting planning $120,000.00

(15) Special events $240,000.00

1200 Salaries, Temporary (Part time) $190,300.00

(12) Membership $50,000.00

(13) Marketing $45,000.00



1300 Wages, Regular (Hourly, FT) $11,800.00

(12) Membership $1,200.00

(13) Marketing $2,400.00



Advantages to OCB

• Uniform & standardized

• Categories are provided

• Easy to set-up

• Can compare line items across areas

Disadvantages to OCB

• May not be as flexible as needed

• May not be able to find the category needed

• Requires a lot of detailed cost estimates• Multiple items in a category

• Repair to buildings• Advertising

Making Purchases

• Charge account• Petty cash• Procurement card• PO….

Normal AmusementsAddress line 1

Address line 2

Purchase Order

Date: _______________ PO #: 1234567

Vendor: ______________

Staff name: ___________ Requisition #: _________

Quantity Description Unit price

Total price

Code

1 Basketball backboard…

$450 $450 24–6170-13

10 Adult League Basketballs

$17 $170 24–6172-13

Budgets. Budget vs. Pricing Pricing 1 program Seasonal Drives budget Budget Multiple programs Fiscal year Deals with revenues & expenditures.

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